Eli5 when trading with leverage, what does the lender get out of it?

Question

I have been looking at crypto leverage trading. Let’s say I put in $50 at 5x leverage and I take profits at 100% gains. Do I get the full $250?

I’m confused about what the exchange gets out of it, is it a percentage, an amount when you make the trade, or nothing at all?

I’m using of Phemex exchange

In: Other

Answer 1

they get interest from making a loan. that’s it if it isn’t though your broker they don’t even always need to know what your borrowing it for. (I don’t know if your broker does or not). you could (but probably shouldn’t (almost really definitely shouldn’t) ) leverage up with a credit card I think if you can transfer the funds to your broker.